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What is Ayushman Bharat Yojana? (Benefits, Registration & Eligibility)

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What is Ayushman Bharat Yojana? (Benefits, Registration & Eligibility)

Ayushman Bharat Yojana was the flagship program launched by the Government of India in the year 2018. It aims at making healthcare services accessible and affordable for the low-income group of people. Let’s understand this scheme in a little detail.

What is Ayushman Bharat Yojana?

The Ayushman Bharat Yojana also known as the Pradhan Mantri Jan Arogya Yojana (PMJAY) has been recognized as the biggest healthcare scheme all around the world. It was announced by Prime Minister Narendra Modi on 23rd September 2018. It is a national health insurance scheme that is designed to offer coverage and make the best healthcare services available to Indians who are economically disadvantaged.

It aims to cover approximately 50 crore Indian citizens and provides average coverage of Rs.5 lakhs per year to all the beneficiaries. The scheme covers most of the costs incurred in the medical treatments including, the costs of medicines, diagnostics and even pre-hospitalization expenses.

The beneficiaries who come under this scheme get an e-card. This card can be used to avail cashless services at any of the empaneled hospitals around the country.

What are the benefits of Ayushman Bharat Yojana?

There are various benefits that this scheme offers. To list a few:

  1. A cashless facility is available for beneficiaries.
  2. It can be used by all family members, and there are no restrictions regarding age or gender.
  3. It covers the cost of medical examination, diagnostic and laboratory services, consultation, medicine and medical consumables, food, and accommodation.
  4. The policy covers expenses from 3 days before hospitalization and 15 days after hospitalization.
  5. It covers the day-care expenses which are included within the insurance package.
  6. It provides cover for the pre-existing ailments which are included under the Ayushman Bharat Yojana.
  7. It covers transport costs of the beneficiary before and after hospitalization.
  8. It includes provisions for post-treatment care.

What are the critical illnesses covered under Ayushman Bharat Yojana Scheme?

Did you know that the Ayushman Bharat Yojana covers around 1,400 procedures along with all related expenses? Here are some of the critical illnesses that are covered under PMJAY:

  • Coronary Artery bypass graft
  • Skull base surgery
  • Anterior spine fixation
  • COVID-19
  • Double valve replacement
  • Prostate cancer
  • Carotid angioplasty with stent
  • Tissue expander for disfigurement following burns
  • Laryngopharyngectomy with gastric pull-up

The registration process for the scheme

Ayushman Bharat Yojana is a government scheme exclusively for the lower-income group people hence there is no specific enrollment process. The beneficiaries are selected based on the SEC 2011 and amongst the people that are a part of the RSBY plan although one can check their eligibility criteria through the following steps:

  1. Visit the PMJAY government website (https://pmjay.gov.in/) and click on the icon that says “Am I Eligible”.
  2. Enter your contact details and generate the OTP.
  3. Select your state.
  4. Now search with your name, mobile number, HHD number or ration card number.
  5. The displayed results will let you know if you’re eligible for the Ayushman Bharat Yojana Scheme or not.

Things Required to apply for the Ayushman Bharat yojana

Below mentioned is the list of documents and other details that are necessary for applying for this scheme:

  1. Identity proof and proof-like Aadhar card or Pan card.
  2. Details like mobile number, residential address and email address.
  3. Caste Certificate
  4. Income Certificate
  5. Documents stating your family status

How to download the Ayushman Bharat Yojana Card online?

To ensure cashless, paperless and portable transactions, the Ayushman Bharat Yojana Golden Card is issued to its beneficiaries. The card contains all the necessary details of the patient and is to be mandatorily presented in order to avail the facilities at the empaneled hospitals. By following these steps one can download the Ayushman Bharat Yojana Card:

  1. Visit the PMJAY website and log in with the registered mobile number.
  2. Generate the OTP by entering the “CAPTCHA CODE”.
  3. Choose the HHD code.
  4. Go to the Common Service Centre and provide the HHD code. They will check the code and other information.The Ayushman Mitra or the CSC representatives will complete the rest of the formalities and procedures.
  5. Pay Rs.30 and get your Ayushman Bharat yojana Card.

What are the eligibility criteria for the Ayushman Bharat Yojana?

The Ayushman Bharat Yojana Eligibility is made with pre-conditions to make sure that only the ones that need and deserve get to avail the benefits, underprivileged people of the society. It has been launched to cover the bottom 40% of the economically weaker sections of the country. It automatically covers destitute and manual scavenger families, living through alms, bonded laborers, primitive tribal groups. Given below is the eligibility criteria for rural and urban population:

1. Rural population

The scheme covers people who fall under at least one of these deprivation categories:

  • Families without an adult member in the 16 to 59 years age range.
  • Families without a male member in the 16 to 59 years age range.
  • Families without an able-bodied member
  • Families with a disabled member in the household
  • Houses with only one room made of Kucha walls and roof
  • SC and ST
  • Landless households who earn a majority of their income through manual casual labor

2. Urban Population

Urban households are classified according to occupation. The categories who are eligible for PMJAY are:

  • Domestic worker
  • Beggar
  • Ragpicker
  • Service providers on the street such as cobbler, street vendor, hawker
  • Sweeper, gardener, sanitation worker
  • Watchmen, Washer-men
  • Artisan, tailor, handicrafts worker, home-based worker
  • Plumber, construction worker, mason, laborer, welder, coolie
  • Driver, conductor, transport worker, cart or rickshaw pullers, helpers to drivers or conductors
  • Mechanic, electrician, repair worker, assembler
  • Peon in small establishment, assistant, helper, waiter, shop workers, attendant, delivery assistant

Who is not eligible for the Ayushman Bharat Yojana?

People are not eligible under the scheme if they:

  • Have a two, three or four-wheeler or a motorized fishing boat
  • Are government employees
  • Have 5 acres or more of agricultural land
  • Earn a monthly income above Rs. 10,000
  • Own refrigerators and landlines
  • Have mechanized farming equipment
  • Have decent built houses
  • Have a Kisan card with a credit limit of Rs. 50,000

You can register your grievances in the grievances section of the PMJAY website. Through this portal, you can also track the status of your grievances.

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Frequently asked questions about Ayushman Bharat Yojana?

  • Can I download my Ayushman Bharat Yojana Card through Digilocker?

    Yes. You can download your Ayushman Bharat Yojana card through Digilocker under the National Health Authority section.

  • How can I check my Ayushman Bharat eligibility?

    Please contact the government helpline number 1800 111 565 to check your eligibility. Alternatively, you can also visit their website and click on on the 'Am I Eligible ' tab.

  • What is the coverage provided under Ayushman Bharat Yojana?

    Coverage is ₹5 lakhs per eligible family per year.

  • Do I need to pay a fee to get the Ayushman Bharat Yojana Card?

    No, all eligible benefactors will get the card free of charge.

  • Are pre-existing conditions covered under this yojana?

    Yes, pre-existing conditions are covered under this scheme.

  • How can I find which hospital is covered under the Ayushman Bharat Scheme?

    You can find the complete list of empaneled hospitals here.

  • Are OPD charges covered under this scheme?

    No, they are not.

  • Where can I lodge a complaint?

    You can lodge a complaint using the Central Grievance Redressal and Management System.

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    Insurance

    What is a Nominee in Insurance? (Meaning, Benefits and more)

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    What is a Nominee in Insurance? (Meaning, Benefits and more)

    A nominee in insurance is a person who receives the proceeds and benefits of the life insurance policy after the demise of the policyholder. Usually, a nominee is registered in the proposal form while buying the life insurance policy but nominees can be added anytime during the policy tenure.

    If the policyholder wishes he can add multiple nominees too, specifying the receives he wants each one of them to have. The policyholder can also change the nominee during the premium payment tenure.

    Who can become a nominee?

    A nominee is someone who is trustworthy and close to the policyholder. Hence usually, parents, spouses, children, relatives and close friends are appointed as nominees. Insurers always make sure that the policyholder has provided complete details about the nominee and their relationship with the policyholder during registration.

    Legally, minors are not considered to be competent to enter a contract. This means that they are ineligible to receive the claims directly. Hence, when a policyholder wants to nominate a minor, they have to assign a custodian. If a situation arises where the minor nominee needs the money, the insurer discharges the claim amount to the custodian until the nominee turns 18.

    Insurers also allow policyholders to have successive or multiple nominees.

    For example, if someone nominates three successive nominees, A, B and C, the claim proceeds will first go to nominee A. If nominee A is unable to receive the proceeds, they will go to nominee B, and if nominee B is unable to receive the benefits, they will go to nominee C.

    Having multiple nominations means that the benefits will be divided among them. Even if insurers allow multiple nominations, many insurers prefer giving the full claim amount to just one of the nominees. This is done after getting the consent of all other nominees. Hence, to avoid legal disputes, it is better to appoint one reliable nominee.

    Many insurers also avoid accepting unrelated parties as nominees, as it increases the risk for the insurer.

    What is the importance of a nominee in insurance?

    The policyholder gets insurance to support his/her dependents in case of unfortunate events. Appointing a nominee fulfills the main purpose of life insurance, that is, it protects the interest of the policyholder. Hence many insurers accept a nominee who is a close relative or someone who will take care of the deceased’s family after his/her death.

    If there is no nominee, the insurance company asks the claimant for a succession certificate, which will be issued by the court of law. This process is tiring and it can be easily avoided if the nomination is registered at the proposal stage. If a clear nominee is absent, it beats the purpose of offering immediate financial help to the family of the insured. Stating a clear nomination allows the insurance company to settle the claim quickly without any confusion.

    A life insurance acts as the financial shield of the policyholder’s family after his/her death. To make sure that the family does not suffer after an accidental demise, it is very important to have a nominee in insurance.

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    What is Travel Insurance? (Benefits, Inclusions & Exclusions)

    What is Travel Insurance? (Benefits, Inclusions & Exclusions)

    While traveling abroad, we prepare to the best of our capacity for any emergencies. However, some emergencies like medical expenses, cancellations, delays, etc cannot be predicted. To safeguard yourself and your family from such situations you must invest in travel insurance for overseas.

    Travel insurance provides financial aid against a wide variety of problems that may arise on a foreign trip. It may come in handy especially for those who are traveling to distant countries. If you’re planning to travel soon, you must understand what overseas travel insurance covers and what are its exclusions.

    Coverage under Overseas Travel Insurance

    1. Illness Cover

    Travel insurance offers complete protection in case of unexpected illness, accidental injuries, and death. The insurance covers various expenses like pre and post-hospitalization costs, permanent disability expenses, dental cover, repatriation costs, etc.

    2. Loss of baggage

    The insurance company provides complete reimbursement in case of loss or displacement of baggage after checking in to the airport.

    3. Flight Cancellation/ Delay Cover

    Trip cancellation cover takes care of all the expenses in case the trip is delayed for 12 hours or more due to the airline’s fault. Also, you will be provided reimbursement if you miss a connecting flight due to the delay of the first flight.

    4. Financial Emergency Benefits

    In case you need urgent money due to theft or robbery on the trip, the insurance company provides you the necessary help.

    5. Document Loss Cover

    Insurance covers the loss of not only passports but any important travel documents and also reimburses you the cost of obtaining the duplicate / fresh documents.

    6. Third-Party Cover

    In case your involuntary actions result in demise, injury, or damage of a person, the insurance will pay the necessary compensation to the concerned person.

    7. Hijack Risk Cover

    If you are caught in the unfortunate event of a hijack, you will be given compensation provided the hijack lasts for more than 12 hours.

    8. Home Burglary Cover

    If your house is robbed during your international trip, you will be provided compensation for the loss of valuables.

    Exclusions Under Overseas Travel Insurance

    • In case of passport loss, if the complaint goes unregistered with police authorities, the company is not liable to pay any compensation.
    • The insured person will not be given medical cover if he/ she did not disclose any pre-existing diseases before the commencement of the policy. Also, patients suffering from HIV/AIDS and venereal diseases are not given cover.
    • The insurance company is not bound to pay compensation if the loss occurs due to mental incapability, depression, the influence of alcohol and drugs, and suicidal attempt.
    • The cover is excluded if you are traveling abroad for medical treatment and also if you are traveling without a valid recommendation from the doctor.
    • You won’t be eligible for insurance if you are diagnosed with life-threatening diseases before your travel.
    • The insurance won’t be liable for any casualties or damage if the visiting country has a risk of war or nuclear threat.

    Traveling abroad can be filled with many contingencies, but investing smartly in travel insurance for overseas will help protect you from it. Irrespective of the country you are traveling to, make sure that you purchase overseas travel insurance for the safety of yourself and your family.

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    What Is Office Insurance?

    What Is Office Insurance? (Features, Inclusions & Exclusions)

    A business owner very well knows that any damage caused to the office building or premises can have adverse effects and disrupt the functioning of the business. Therefore, it is very important to protect the office infrastructure against any unforeseen event.

    Office insurance is a comprehensive insurance policy specifically designed to protect organizational infrastructure against unprecedented threats. This policy covers all office premises including manufacturing plants and warehouses.

    Let’s dive deeper and understand the inclusions and exclusions under the office insurance.

    Inclusions under Office Insurance

    • The insurance protects your office in cases of natural disasters like fires, earthquakes, cyclones, and also man-made disasters like mechanical and electrical breakdowns, accidental breakage, etc. Some insurance policies also include damages caused by terrorist activities.
    • Office insurance also offers double benefit by covering your employees for accidental death or injury during their employment tenure.
    • The policy offers third-party legal liability cover.
    • It also provides coverage for personal accident expenses incurred by the organization.
    • This insurance protects your office from any loss caused by break-ins, burglary, and theft.
    • Natural disasters like earthquakes and cyclones can cause significant damage to your office. The office insurance might cover the expenses incurred for fixing broken glasses and other interiors of the office. Moreover, it also covers the cost of housekeeping services required after the loss.
    • The insurance covers not only post-disaster losses but also some pre-disaster safety measures. It covers the costs of putting up precautionary neon signs and hoardings for the safety of employees.
    • It provides special compensation in case the insured employees die or suffer injuries or disabilities.

    Exclusions under Office Insurance

    • The insurance does not cover damage caused by dishonest acts of employees like robberies, fraudulent conversions, insider trading, etc.
    • Although office insurance protects the office infrastructure from damages, it does not provide coverage for normal wear and tear and steady deterioration of the building.
    • The policy will not cover any intentionally made damages to the office building.
    • Any loss caused by war or war-like situations will not be covered. Also, damage due to nuclear or atomic radiation will be excluded from the policy.
    • The insurance company will not be responsible to pay for any damages caused by illegal activities.
    • In case of fires, if the insurance company finds the actual registered property value to be less than the chosen sum insured, they will make the necessary deductions in the claim amount.
    • The insurance company is not liable to pay any compensation in case the damage is caused by environmental pollution.
    • In case of unprecedented incidents, office insurance covers physical damages caused to your infrastructure. However, it does not cover the loss of business revenue caused by that incident.
    • The loss caused by manufacturers, repairers, suppliers, or any other third party is not covered.

    While we try to protect our business to the best we can, there are some emergencies that we just cannot prepare for. Investing in office insurance will surely help you if you face any such emergencies. There are a plethora of insurance companies that offer this insurance policy, compare and choose the best one for your business.

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    Insurance with Home Loan (Types, Features and Benefits)

    Insurance with Home Loan (Types, Features and Benefits)

    Home loans have become extremely popular in today’s world, but the personal and financial risks involved with them have increased too. Therefore, to protect you in such situations it is recommended to purchase an additional insurance with home loan known as the home loan insurance. To better understand the concept of home loan insurance, let’s understand what it means and analyze its features and benefits

    What is Home Loan Insurance?

    When you purchase a home loan, you are bound to pay its EMI regularly to the lender. However, due to unforeseen emergencies, you might experience a financial crunch which would result in default of EMI payment. This is where home loan insurance will help you as the insurance company will settle your outstanding home loan amount with the lender.

    There is always confusion amongst people about home loan insurance and home insurance. While home loan insurance clears your home loan debt, home insurance offers coverage to your home and its contents against emergencies like fires, explosions, lightning, theft, burglary, etc.

    Features of Home Loan Insurance

    1. Premiums

    A majority of home loan insurance plans have a one-time premium. The lenders often add this premium amount to your home loan amount i.e., you pay for the premium along with your monthly EMI instalments.
    For example, you have purchased a home loan of Rs 40 lakhs and the premium for your home loan insurance is 2 lakhs. Your monthly EMI will be calculated for 42 lakhs.

    1. Life cover

    Home loan insurance plans also offer life cover. The amount of life cover in this plan is equivalent to your outstanding home loan amount. The cover is valid or offered only until the clearance of the loan.

    1. Add on coverages

    Several home loan insurance plans offer optional add-ons to enhance the cover benefits. Some add-ons offered are mentioned below-

    • Terminal Illness Coverage
    • Accidental Death Coverage
    • Financial help for jobless people up to three to six months of EMI payments
    • Disability coverage

    Benefits Offered Under Home Loan Insurance

    1. This insurance policy safeguards the borrower’s family from financial debt in case of his unfortunate demise.
    2. You can get tax benefits for the premium paid on this policy under section 80C of the Income Tax Act.
    3. The add-on coverages on this policy ensure that the outstanding loan amount is paid not only in the case of unfortunate death but also for critical illnesses and disability of the borrower.

    The Two Types of Home Loan Insurances

    You can buy home loan insurance in two forms- either as term insurance or separate home insurance.

    Term Insurance– This policy covers all your liabilities and debts in case of emergencies.

    Separate Home Insurance– This policy only clears the outstanding loan debt.

    • Separate Home insurance policies come with reduced coverage. This means that the coverage is linked to the outstanding loan amount and gets reduced as you pay off the loan. In a term insurance policy, the coverage remains the same.
    • While a term insurance policy reimburses you for the loan amount you pay to the lender, in the case of separate home insurance the amount is directly paid to the lender.

    Points to Remember While Buying a Home Loan Insurance

    • Home loan insurance is offered by both general life insurance companies and life insurance companies. General life insurance companies require you to renew the policy on an annual basis whereas life insurance companies offer the policies for longer terms. Choose wisely based on your needs.
    • Always check that your insurance policies have riders that cover situations like unemployment, disability, natural or accidental death. These riders will help you gain extended coverage upon the original policy.
    • Make sure that your insurance cover period and the loan tenure match.
    • Avoid purchasing a shorter cover period while buying a home loan insurance when you’re young. This is because insurance companies usually hesitate to offer longer coverage to aged people. Even if they do agree, they might charge a very high premium for it.

    Make sure that you are financially stable before purchasing insurance with home loan, as the total cost of EMI’s and premiums might take a toll on your savings. Also, make sure to compare different policies in the market to get the lowest premium amount with the best coverage.

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    Insurance Penetration in India (Survey Reports & Findings)

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    Insurance Penetration in India (Survey Reports & Findings)

    The insurance sector in India has seen massive growth in recent years. But despite this growth, the performance of the Indian insurance sector is still way below that of its Asian competitors as revealed by the 2020-21 economic survey. The two main indicators used in this survey, namely insurance penetration and insurance density, show that India’s growth is much less than countries like Malaysia, Thailand, and China.

    Among the two indicators, insurance penetration in India continues to be a bigger challenge as it has grown a marginal 1.05 percent in the last 18 years. This poor rate indicates that even though the population of the country has exploded, the number of people that have purchased insurance is very minimal. Let’s explore this topic further and understand what insurance penetration is and the findings of the economic survey in 2020-2021.

    What is Insurance Penetration?

    Insurance penetration is calculated as a percentage of the insurance premium to the country’s Gross Domestic Product (GDP). Insurance penetration is one of the main factors experts use to determine the development of the insurance sector in a country.

    Findings of Economic Survey 2020-21

    According to the economic survey 2020-21, the insurance penetration in India has grown from 2.71% in 2001 to 3.76% in 2019. But this marginal improvement was still lower than countries like Malaysia, Thailand, and China’s 4.72, 4.99, and 4.30% respectively in 2019. The insurance penetration in this survey was calculated for two different segments of the market- the life insurance segment and the non-life insurance segment.

    The penetration in the non-life insurance segment dropped from 0.97 to 0.94% in 2018. But the penetration in life insurance segments showed a slight upward trend from 2.74 to 2.8% in 2018. These numbers are very low when compared to the global insurance penetration rate which was 3.35% for the life segment and 3.8% for the non-life segment.

    India also had a low insurance density which was the second key factor in the economic survey. The insurance density is the ratio of insurance premium to the population of the country. The insurance density just like insurance penetration was measured for life and non-life insurance segments. The density was $58 and $19 in the life insurance segment and non-life insurance respectively. These numbers are alarming when compared to global insurance density which was $379 and $439 for the life insurance segment and non-life insurance segment respectively.

    Key Reasons for Low Insurance Penetration in India

    • Lack of awareness and education regarding insurance amongst the masses.
    • Indian consumers see insurance as an expense rather than an investment.
    • The lengthy paperwork required while purchasing insurance is also one of the reasons for the low penetration rate.
    • Many policies in the market are quite complex for people to understand and hence a majority of them avoid purchasing such policies.

    While the economic survey showed us that the insurance density and insurance penetration in India is very low, there were some positives statistics in it. Gross direct insurance premium has grown 24.2% in 2019 from last year with a total collection of 7.62 lakh crores. 54.75% of gross direct insurance premium was from renewal of premiums and the remaining was from new business.

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    How to calculate premium for Insurance?

    How to calculate premium for insurance?

    When you buy insurance, the company will charge you money in exchange for the coverage that it will provide. This amount of money that you pay is known as the insurance premium. If you are thinking about buying an insurance policy, questions like, ‘how to calculate premium for insurance?’ might run through your mind and we have the answer to that.

    The premium is decided after considering various factors, and it is different for each insurer and each policyholder. The type of insurance policy that you opt for will decide if you pay the premium monthly, quarterly, or semi-annually. You might also have to pay the full amount at once before the coverage starts.

    What is the right amount of premium one must pay for a specific good? There is no fixed set of costs for insurance premiums.

    You might have the exact same good insured as someone else with the same coverage and still end up paying more premium. This is because the amount of premiums charged depends upon the insurance company and is calculated keeping in view certain factors. Let’s understand how insurance premiums are calculated.

    How to calculate premium for insurance?

    Insurance companies consider various personal and financial factors while calculating the premiums. While you fill in the policy form, there are various details that you are asked to provide. Depending on these the insurers evaluate the insurance premium to be charged. The main factors that affect the insurance premiums are:

    1. Age: Insurers look at the age of the insured in order to predict the chances of the insurance policy being used. For instance, as young people are healthier, they are less likely to claim the insurance and therefore, might get lower premiums as compared to older people.

    2. Type of coverage required: Higher the coverage more is the premium. For instance, an auto insurance plan with liability only will have a less premium as compared to a plan that includes medical expenses too.

    3. Occupation and income: Some occupations, such as pilot, soldiers, gas industry workers, etc. are considered more dangerous than others by the insurers. People working in these fields might have to pay higher premiums compared to people working in other safer areas. Insurers also look at how much a person earns to ensure that they will be able to afford the premium payments. Debt is another factor that influences the cost of your premium.

    4. Personal information: The insurance company takes a very close look at the personal aspects of the policyholder’s life such as medical history, credit history, marital status, lifestyle, habits like smoking, etc.

    Actuaries are appointed by most insurance companies to assess the risk of financial loss using statistics and mathematics to predict the probability of the insurance being used. They create a table that is given to the insurance company’s underwriting department, the professionals there then use this information to calculate the premiums.

    To get the best coverage at an affordable price, it is important to take your time and thoroughly research through the various option available, both online and offline. Understanding the premium calculation process might help you to predict the amount of premium that might be charged and plan things accordingly.

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    What Is Business Interruption Insurance?

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    What Is Business Interruption Insurance?

    As a business owner, you must be ready for any kind of contingencies that might halt your business. Having the right insurance makes it easier to face such situations. One of the most sought-after insurance for business owners is business interruption insurance.

    It provides coverage against the income lost due to the halting of the business by a natural disaster or other mishaps. This type of insurance is usually sold as an add-on or a rider on property or casualty policies. Under this insurance, the insurer is only liable to pay for damages for the listed damages. Let’s look into its coverage and exclusions.

    Coverage under Business Interruption Insurance

    • Profits: The Insurance covers all profits the business would have made if the loss had not occurred.
    • Fixed costs: The coverage includes the fixed costs that are incurred while running the business.
    • Relocation costs: If you find a temporary location to operate your business, the insurance covers the relocation costs and also the operating costs of the temporary location.
    • Training costs: A fire or a natural disaster causes damage to the machinery. The company will then need to train its workers on how to handle the new machinery. The insurance covers the cost of training.
    • Costs incurred due to civil authority closures: A government-mandated curfew or road closure near the business premises may directly affect your business as your workforce may not be able to reach the company. The insurance also provides coverage for such losses.
    • Payroll costs: It might be difficult for a business owner to pay his employees when the business is shut. A business interruption insurance helps the owner to make payments and retain current employees.
    • Tax costs: Even if the business undergoes loss, the company still has to pay taxes. This type of insurance covers all the tax costs of the company and saves it from penalties.
    • Loan payments: A business interruption insurance covers the loan payments of the business in case of a loss.

    Exclusions under Business Interruption Insurance

    • The insurance is not liable to pay for the cost for any items like glass that may have broken during the disaster.
    • The damages caused by floods and earthquakes are not covered under business interruption insurance.
    • The insurance company won’t cover costs for the income which is unaccounted for in the business’s financial records.
    • The insurance will not cover any utility costs.
    • Shutdown costs incurred due to a pandemic or communicable diseases will not be covered.

    How much coverage should you opt for?

    It can be hard to figure out how much coverage to opt for under this insurance. Here are some questions you can ask yourself to determine the coverage needed.

    • How long will it take for you to recover from the loss?
    • Does your business infrastructure have up-to-date safety systems?
    • Can you obtain a temporary location to restart the business?

    You can also make a rough estimate of your gross earnings and projections to estimate future profits. This will help you figure out how much coverage you want.

    Business interruption insurance is great to safeguard your business from disasters. It is advisable to compare the terms and conditions of various policies and only then choose the one that suits your and your business’s needs the best.

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    All You Need to Know About an Insurance Repository

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    All You Need to Know About an Insurance Repository

    Earlier, the insurance policy documents were available in paper form which made the policyholders concerned about the safety of the papers. On September 16, 2013 the IRDA launched the insurance repository system. Now, insurance policies can be converted into electronic form and stored with an insurance repository. This eliminates the risk of loss or alteration of the policy documents and also offers convenience to the policyholder. Let’s know more about insurance repositories and the benefits.

    What is an insurance repository?

    An insurance repository is a database that maintains and holds the insurance policies in electronic form on behalf of insurers. Insurance repositories are not authorized to sell insurance policies, they are only permitted to maintain the policies in electronic form and provide a record of them. E-policies provide customers with safety and convenience. Along with offering safety and convenience to the customers, an insurance repository is also bound to maintain transparency with the policyholders under the rules set by the IRDA.

    The IRDA had licensed five insurance repositories. But one of them (SHCIL Projects Limited) surrendered its license in 2015. The remaining four entities are:

    • CDSL Insurance Repository Limited
    • National Insurance-Policy Repository by NSDL Database Management Limited
    • CAMS Insurance Repository Services Limited
    • Karvy Insurance Repository Limited

    What is an e-Insurance account?

    Insurance repositories hold the insurance policies in e-insurance accounts. Even if the insurance policies are from different insurers, they can be held and easily accessed with one account. A policyholder can open an e-IA (e-Insurance Account) with any one of the IRDA-approved insurance repositories. The IRDA only allows one e-Insurance Account per person. There is no cost for opening an e-Insurance Account. Even the services provided by the repositories are free. The policies issued before the launch of insurance repositories can also be easily converted into the electronic form by making a request to the insurer or repository.

    Benefits of insurance repository

    Holding policies in the electronic form have various benefits such as:

    1. Safety

    The biggest benefit of storing e-policies is that there is no risk of loss or damage. Holding a policy in its electronic form ensures that the policy is in safe custody. It also allows for easy access, as the policy can be viewed or downloaded at any time by accessing the e-Insurance account.

    2. Single Point of Various Services

    As all the insurance policies are stored in one place, changing and updating details such as address, contact number or nomination becomes easy. It also becomes easier to track your policies.

    3. Simple Payout Transfers

    The insurance repository system allows for efficient and faster services. Therefore, availing the policy benefits also become easier and faster, as the proceeds are electronically deposited in the registered bank account.

    4. Single KYC

    Keeping your insurance policy with an insurance repository will mean that your KYC formalities are already completed. This way, you won’t have to go through the KYC process every time you buy a new policy.

    Insurance policies are important financial assets hence they need to be handled properly. Storing policies with an insurance repository makes a lot of tasks easy along with ensuring safety and security. Therefore, it is advisable to open an e-insurance account for your own convenience.

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    Frequently asked questions about insurance repositories

  • Which insurance repositories can I choose?

    You can choose from the following insurance repositories:

    • NSDL
    • Karvy
    • Central Insurance Repository
    • SHCIL
    • CAMS
  • How can I open an insurance repository account?
    1. Download the account opening form from your preferred insurance repository's website.
    2. Fill the form.
    3. Attach your KYC documents.
    4. Submit your forms.
  • Can I change my insurance repository account?

    Yes, The account holder will have the ability to shift from one repository to another. For example, a CAMS account holder can shift to NSDL and vice versa. 

  • When did The Insurance Repository system start?

    16th September, 2013.

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    Insurance

    What is the time limit for approaching an Insurance Ombudsman?

    What is the time limit for approaching an insurance ombudsman?

    There are rare occasions where you are not satisfied with the grievances redressal of your insurance company. On these rare occasions, you may want to escalate your issue to a higher forum. The Insurance Ombudsman was formed with exactly this in mind. The Insurance Ombudsman looks after the interests of the policyholders and provides arbitration and resolution services.

    That being said, one must be cognizant of the time limit for approaching an insurance ombudsman, and ensure that their case is raised within the stipulated time limit.

    In this article, we will cover all the nitty-gritty of how you can approach the insurance ombudsman with your complaint and get a resolution.

    This article will be covering the following:

    • What is an Insurance Ombudsman?
    • Where can you find the Insurance Ombudsman?
    • Who can approach the Insurance ombudsman?
    • When can you approach the Insurance Ombudsman?
    • What are the steps to follow while approaching the Insurance ombudsman?
    • What is the time limit for approaching the Insurance Ombudsman?

    What is an Insurance ombudsman?

    The Institution of Insurance Ombudsman was formed by the Government of India in November 1998.
    Its main objective is to handle customer grievances systematically and bring fair resolution. The policyholders can get their complaints resolved in an unprejudiced and efficient manner.

    Location of Insurance Ombudsman

    There are 17 main insurance ombudsmen offices located in India. The website of IRDA mentions all the details and contact information of all the Ombudsman centers. An aggrieved policyholder can accordingly choose to visit the nearest insurance ombudsman center.

    Who can approach Insurance Ombudsman?

    Any policyholder, their legal heirs, or nominees can approach the insurance ombudsman to file their complaints.

    When can you approach the Insurance Ombudsman?

    If a policyholder has approached his insurance company and they were not satisfied with the resolution provided by the company, the policyholder can approach the Insurance Ombudsman within 30 days of the initial grievance.

    You can approach the Insurance Ombudsman for the following reasons:

    Any issues about the violation of provisions of the Insurance Act 1938 or the guidelines and regulations issued by the Insurance Regulatory and Development Authority (IRDA)

    1. Total or limited rejection of your claims.
    2. Any matter related to premiums payable or paid.
    3. Holding up the claim process.
    4. Not providing the policy documents to the policyholder after the premium has been paid.

    Steps to be taken while approaching the Insurance Ombudsman?

    Step 1 – As mentioned above, if you have already addressed your grievances with the insurance company and are not satisfied with the outcome, you can approach the insurance ombudsman and launch a complaint within 30 days of your issue.

    Step 2 – You can get in contact with the Insurance Ombudsman center in your jurisdiction.

    For Instance, if the policyholder is staying in Mumbai and his insurance company is located in Mumbai, he may file a complaint with the Insurance Ombudsman center located in Mumbai.

    Step 3 – You must register a written complaint by writing a letter to the Insurance Ombudsman. You could also email your complaints to the Ombudsman, but you would also need to send a formal letter to them.

    Step 4 – All valid and important information must be provided in the letter. Details such as name, policy number, date of the policy, etc.
    You must provide a detailed explanation of your grievances and the details surrounding them. Also, all relevant documents must be enclosed with the letter and should be sent to the Ombudsman center.

    Step 5 – You will be required to fill in P-II and P-III forms (These are simple forms used for taking down the complaint details in a particular format). You can also fill the forms and send them by post to the Insurance Ombudsman and they will reach back to you shortly.

    Step 6 – Once you register the complaint and submit all the appropriate documents, you will be given a date where you and a representative of the respective insurance company will be called for a hearing.

    An executive will be assigned by the Insurance Ombudsman to represent you free of charge. Usually, the matter will be solved within just one hearing as there is no system of providing further dates.

    What is the time limit for approaching the Insurance Ombudsman?

    You will have to register your complaint with the Ombudsman within one year of your claim rejection by the insurance company.

    Process of judgment

    During the hearing, the Insurance Ombudsman will pay detailed attention to what the policyholder and the insurance company have to say. The Ombudsman will decide on a fair conclusion. It will pass an unprejudiced judgment and the minutes will be prepared.
    If the policyholder accepts the Ombudsman’s judgment as full and final, it will intimate the insurance company and the company must comply with the terms of the settlement within 15 days.

    However, If the policyholder does not accept the terms of the settlement the Insurance Ombudsman will pass an award within 90 days after receiving all the requirements from the complainant. This will be binding on the insurance company.
    The insurance company cannot challenge this settlement decision further and is bound to comply with the terms of settlement within 30 days of award receipt.

    However, if the policyholder is not satisfied with the terms of the settlement he is free to go to court and challenge the order passed.

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    Insurance Ombudsman in Mumbai

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